Whole Life Insurance

  • Life insurance with a savings feature. Premiums generally are the same (level) every year. When you are young, your premiums are more than the cost of insuring your life at that time. The excess amount accumulates and resembles a savings account, called cash value.
    • The surplus is used by the company to ensure someone later in life when their level premium is no longer enough to cover expenses. (Also referred to as Ordinary Life.)